October 2, 1998
The Administration has no objection to S.314, the "Federal Activities
Inventory Reform Act of 1998 (FAIR)." The Act would reinforce efforts to
improve the identification and review of non-inherently governmental
activities. The bill permits the agencies to assess which functions should
be submitted to competition with the private sector and allows the
Government to choose the source -- public or private -- which is the most
cost effective and in the best interests of the taxpayer. This bill is
consistent with Administration efforts to reform Federal procurement and
ensure that taxpayers receive the best value.
The Administration's policy is to promote competition to achieve the best deal for the taxpayer. Competition is an integral part of the Administration's overall reinvention and management improvement effort. The inventories of commercial activities required by the FAIR Act will help senior agency managers and OMB to identify opportunities not only for competition, but also other reinvention opportunities, including: re-engineering, organizational restructuring, termination decisions, and the possibility of applying new technologies, such as electronic commerce.